Germany could face economic crisis, claim German industrialists and analysts

Berlin : The German economy is progressing well at present. But this trend will not continue for a long time. The German economy may collapse in the times to come, claim the German industrialists and the analysts; some industrialists reminded of the 2008 recession. A few days ago, German reporters also had claimed that there is uncertainty in the German economy.

The German economy grew by 2.2% in the last year. This is the first time since 2011 that there is such growth in the German economy. It is said that the demand for skilled work force has increased in Germany because of this. Along with this there is also an increased demand for raw material required in the food, plastic, chemicals and the construction sectors. But the industrialists and the analysts are claiming that it is not easy to supply as per demand in Germany.

Businessman, Ralf Schlesselmann, has claimed that the positivity in the German economy is not going to last long. Schlesselmann expressed his anxiety, ‘There was a similar kind of positivity in the German economy, in the year 2008. But, everyone is aware, what happened next.’ Andreas Scheuerle, economist at ‘Deka Bank’ has also said that the growth in the German economy can prove detrimental. ‘Along with the growth in the economy the seeds of a crisis are also being sowed within,’ warned analyst Stefan Kooths.

At the same time, some analysts have claimed that Germany will benefit from ‘Brexit’. Inflation could rise as there is distress in some sectors. But, according to some analysts, this will not have a major effect on the German economy. Apart from a few analysts, a big group of reporters and the media are predicting an economic crisis. Two weeks back, the German reporters had warned about major challenges faced by the German economy.

It has been more than a month since the results of the general elections in Germany have been declared. There is no government in Germany even today. Chancellor Angela Merkel and the ‘SPD’ party willing to form a government have not been able to arrive at consensus. There are major differences in the two groups on the refugee issue. ‘AfD’ has claimed that the refugee influx are putting a strain on the German economy. But Merkel has refuted this claim. Also, she is firm on her refugee policies. The analysts are of the opinion that this political discord can affect the economic situation. Still, there is no political consensus on granting asylum to the refugees.